Here are the steps to create a ringtone for your iPhone. I must give credit to tech-recipes.com for these steps, however I had to modify them a little for iTunes 8.

I first brought the DRM-free audio file into Garage Band or you can use another editor, then edited the track to the part of the song I wanted to keep. I then duplicated the track and copied and pasted the track so I could create the loop once in the file itself.

I then exported the garage band file to iTunes which was an aif file. (you may have other options of export)

Create iPhone Ringtone from Audio File in iTunes

1. Add the mp3, aif or wav file that you want to convert to a ringtone to the iTunes Library by selecting File>Add to Library or “Command+O”

3. Select the file in iTunes and then right-click select Convert Selection to AAC in the Advanced menu.

(if ACC is not available go to your iTunes Preferences and select the “General Settings.” Then select the “Import Settings” button located toward the bottom right-hand side. Where it says “Import Using” select “AAC Encoder” from the drop down menu. Select OK. And select OK again.)

4. Right-Click on your new AAC file and select Show in Finder.

5. In finder, Right-Click and select Get Info from the File menu

6. Change the file extension from .m4a to .m4r

7. Confirm when the dialog asks if you really want to make the change (to keep the .m4r)

8. If you do not have a Ringtone Folder in your iTunes Music Directory, create one now (/Music/iTunes/iTunes Music/Ringtones) If you have a Ringtone Folder skip this and proceed to step 9.

9. Now drag or copy (your preference) your file to the Ringtone Folder in the iTunes Music Folder.

9. Go to iTunes and choose File>Add to Library or “Command+O”

10. Go to the Ringtones Folder and select you .m4r file

9. Connect your iPhone and select the Ringtone tab. Select the new ringtone that has been created.

(if you manually manage your music, as I do, you can just drag the ringtone into your iPhone as you would a normal song. It will automatically be added to your iPhone’s ringtone list.

10. Now sync your iphone with iTunes.

11. In your iPhone assign the ringtone to whomever you wish.